Predicting the Effects of Electronic Word of Mouth and Product Innovation to Purchase Decision and the Impact on Customer Loyalty
Alifa Savira Putri*
Department of Communication, Binus Graduate Program, Master of Strategic Marketing Communication, Bina Nusantara University, Jakarta, 11530, Indonesia Email: alifa.putri@binus.ac.id
Ricardo Indra
Department of Communication, Binus Graduate Program, Master of Strategic Marketing Communication, Bina Nusantara University, Jakarta, 11530, Indonesia Email: Ricardo.indra@binus.ac.id
Indah Dirgahayu Putri Pertiwi
3Department of Communication, Binus Graduate Program, Master of Strategic Marketing Communication, Bina Nusantara University, Jakarta, 11530, Indonesia Email: Indah.pertiwi@binus.ac.id
Ulfira Salsabilla
Department of Communication, Binus Graduate Program, Master of Strategic Marketing Communication, Bina Nusantara University, Jakarta, 11530, Indonesia Email: Ulfira.salsabilla@binus.ac.id
*Corresponding Author: alifa.putri@binus.ac.id
Abstract
The dynamics of consumer behavior have undergone a transformative shift, especially in today’s digital age where most customer read online reviews before making purchase decision. Online reviews are one example of the many examples of Electronic Word of Mouth (EWOM). On the other hand, previous research states that not only EWOM has an impact on purchasing decisions, but product innovation has also play a big role in purchasing decisions and purchase decision has an impact for customer loyalty. Therefore, this study aims to see how EWOM could affect purchase decision by involving product innovation through online review of body care product Iswhite on e-commerce Shopee. This research adopts a positivist paradigm and employing a quantitative approach that is explanatory through a cross-sectional survey. The study utilizes theoretical approaches such as the Planned Behavior Theory. The experiment was carried out within 100 participants who had purchased the Iswhite body mask product. After all the data was collected through Google Form and all the data is processed Statistical Package for Social Science (SPSS) software. The result shows that the two variables EWOM and product innovation has a significant effect towards purchasing decisions and purchasing decisions has a significant effect towards on consumer loyalty.
Keywords: Electronic Word of Mouth, Product Innovation, Purchase Decision, Customer Loyalty, and E-Commerce